Looks like this made it into 12.10. In my case it IS a duplicate of
#1042225 and hitting escape once for the textual and twice for the
graphical FDE password prompt works for me. I've upgraded from 12.04
(and before this I've been following stable releases). Removing the VT
handoff option off the kernel line at boot makes the graphical prompt
appear without screen blanking / the display switching to power saving /
standby mode.

If you need more details please let me know.

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https://bugs.launchpad.net/bugs/1030094

Title:
  LVM encrypted, screen turned off after grub

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